Businesses ranging from nail salons and gyms to car washes and bookstores may be missing out on higher profits by not offering subscription services.

A subscription service refers to a customer making advance payments for a weekly, monthly or any time-extended service, with cost savings compared to paying as you go. Subscription models are ideal for businesses that offer predictable, needed services.

For instance, at car wash/oil change centers, customers benefit by paying a one-time cost for months or a year’s worth of service. In exchange, they save a percentage off one-time payments for the same timeframe.

There is also a convenience factor involved. Paying upfront helps customers set budgets so that they won’t have to worry whether they will be able to obtain a needed service later in the month. They also save time at the business by skipping the hassle of digging for cash or deciding which credit card to use.

There is no hard rule for what a business can offer as a subscription service. A bookstore could provide a program through which readers pay upfront for monthly book club nights featuring free refreshments or author talks. A bookseller could also offer a plan that allows customers to buy a certain number of books at a discount in a given timeframe.

Automatic restocking is another great way to build repeat business. Customers can save by having their credit cards automatically charged for products that they need on a timely basis, such as pet food or vitamins. Consumers appreciate auto-shipping as they don’t have to worry about forgetting to order items before they run out.

Offering subscription services can be very profitable for independent retailers in several ways. They can make inventory management and budgeting more predictable and efficient. Advance payments also realize savings on ever-increasing swipe fees.

Subscription services have the added benefit of boosting customer loyalty. People who use your business month after month are likely to refer friends and family. Plus, the business can get to know its customers through repeated visits. These relationships foster an honest exchange of thoughts on your business and what you can offer or improve to better meet people’s needs.

Subscription services also increase customer retention. Once a patron becomes accustomed to a service, they will be less likely to switch to a competitor, even if their plan is less expensive.

Businesses can further profit by growing their services. For instance, many car washes offer tiers of service. A customer who initially buys a series of basic car washes may eventually purchase a higher tier, or VIP service package. 

There are times when people are too busy to make all of their allotted nail salon visits or trips to the gym. When this happens, the business still gains revenue. Some consumers have so many subscriptions that they simply forget to use them all.

While some retailers may balk at offering discounted services, there are many advantages to consider. Subscriptions give businesses the ability to build customer loyalty and retention, adapt to patrons’ changing needs, benefit from underused subscriptions, and ultimately increase profits.